MEGADETH's DAVE MUSTAINE agrees to pay $1.4 million to settle fired ex-manager's lawsuit

According to Billboard, MEGADETH‘s Dave Mustaine has agreed to pay his former manager $1.4 million to end the litigation over accusations the band still owed commissions after the manager was “unceremoniously” fired.

In his June 2023 lawsuit,Cory Brennan and his Five B Artist Management claimed that they were approached by Mustaine in late 2014 to manage the MEGADETH leader’s career “and get it back on track. Mustaine and Brennan had a preexisting friendship from when Brennan was the General Manager of Sanctuary Records, which had released three successful records for Mustaine and MEGADETH. Over a few phone calls and an in-person meeting, Mustaine and Brennan agreed that Brennan and 5B would manage Mustaine‘s career in exchange for a 15 percent commission on all gross proceeds earned by Mustaine and his entities from products released during Plaintiffs’ management term (songs, albums, merchandise, etc.),and all contracts executed or substantially negotiated during the management term, regardless of when those proceeds were received,” the lawsuit stated. “Mustaine also agreed to reimburse Brennan and 5B for all customary costs they incurred to render their management services, including travel and other management-related expenses.

“Under the Agreement, Plaintiffs began managing Mustaine‘s career in early 2015,” the lawsuit continued. “Plaintiffs successfully managed Mustaine‘s career for the next nine years, and helped re-establish his band, MEGADETH, as one of the greatest metal bands of all time. Plaintiffs worked tirelessly as Mustaine‘s manager during that time, helping him with his personal struggles, looking out for his health and well-being at home and on the road, protecting him from bad influences, managing his personal and professional conflicts, and guiding him creatively to produce some of his best music. Plaintiffs were available to Mustaine 24 hours a day, seven days a week. During Plaintiffs’ management, the band won its first Grammy, released two of its highest charting records, and saw its demand rise from playing small clubs to arenas and amphitheaters all over the world. Plaintiffs’ role in this success cannot be disputed. As recently as December 2022, after Brennan helped advise Mustaine and his booking agents in building a lucrative summer and fall tour schedule, Mustaine wrote to Brennan: ‘Excellent work Cory! No one can manage as successfully and professionally as you.’

“Despite this success and their long-term relationship, on April 28, 2023, Mustaine, through his lawyer, unexpectedly and unceremoniously terminated Plaintiffs, stating no reason for the termination,” the lawsuit added. “On information and belief, the decision was made to help send business to Mustaine‘s son, who has been trying to build a career in artist management. The letter also wrongly asserted that, from its date forward, Plaintiffs would have no right to collect any commissions in connection with the products released and contracts entered into or substantially negotiated before the termination.”

In a statement to Billboard on Wednesday, Brennan‘s attorney, Howard King, said that while his client was “displeased at having to sue an artist,” he was “gratified” by the settlement payment.

“Dave Mustaine, who has a known history of firing advisors, terminated Five B Artist Management after 9 years of their having resurrected his failing career,” King said. “Ignoring the success Five B had helped Dave achieve, including a campaign to help him win his first Grammy, the release of two hit albums, and the elevation of his touring from small clubs back to arenas and amphitheaters, Dave simply refused to pay commissions owing and forced 5B to file a lawsuit.”

Still unresolved is the countersuit Mustaine filed against Brennan last year, in which the MEGADETH frontman accused his former manager of “continuous and repeated management failures throughout their professional relationship with Mustaine and MEGADETH. These failures — the result of (Brennan and Five B‘s) conflicts of interest, negligence, breach of fiduciary duty — have, in addition to their monetary injuries, dealt serious blows to MEGADETH‘s reputation and even David Mustaine‘s physical health,” the cross-complaint, which has also been obtained by BLABBERMOUTH.NET, reads. “Far from an alleged ‘successful nine-year relationship’ that helped guide MEGADETH back to prominence and success, as (Brennan and Five B) assert, (Brennan and Five B‘s) management was inattentive and careless, plagued with missteps and mistakes that were at best amateurish and unprofessional, and at worst dangerous and harmful. This mismanagement pervaded all aspects of (Brennan and Five B‘s) representation; months after firing Brennan for his managerial failures, (Mustaine and MEGADETH) are still discovering and attempting to resolve problems created by Brennan and 5B.”

Citing one example of how “the health of Mustaine and the MEGADETH crew was jeopardized and indeed harmed by Brennan and 5B‘s mismanagement,” Mustaine‘s attorney wrote in the cross-complaint: “In 2023, MEGADETH was scheduled to perform in Australia at Knotfest, a music festival created by the heavy metal band SLIPKNOT, whose manager was Brennan. Before MEGADETH performed, Brennan was notified that the stage lacked the 21 feet of stage space between the front edge of the drum riser and Mustaine‘s microphone — the distance required for Mustaine to perform safely without damaging his hearing. Instead, the stage at Knotfest Australia only had approximately twelve feet between the drum riser front edge and the microphone — over nine feet less than was safely required. Brennan was already aware of the necessity of this stage space, as it was specified in the band’s rider.

“In an attempt to resolve this problem and perform safely, (Mustaine and MEGADETH) asked Brennan to move SLIPKNOT‘s production back to allow for more space on the stage. Brennan refused.

“After performing two nights with this limited and unsafe stage space, Mustaine‘s hearing sustained damage, requiring medical attention from Australian paramedics. This injury has caused significant harm to Mustaine‘s hearing; he continues to suffer hearing loss, and is in the process of seeking further treatment.”

According to Mustaine‘s complaint, Brennan and Five B “also failed to pursue revenues that were owed to Mustaine. In 2017, Mustaine informed (Brennan and Five B) that he intended to pursue his interest in songwriting credit and royalties for songs that he wrote or co-wrote as a member of METALLICA, and for which he was owed royalties. (Five B) participated in discussions with Mustaine regarding these credits and royalties, and were aware that they were responsible for pursuing this matter to ensure that Mustaine was appropriately credited and compensated for his work, they failed to do so. After broaching the topic in 2017, they never received any updates on the matter. Instead, upon information and belief, (Five B) simply failed to act. Through their inaction, (Five B) failed to appropriately pursue or protect (Mustaine‘s) interests.”